Income Tax (Wage Earners).

Oral Answers to Questions — National Finance. – in the House of Commons on 19th February 1942.

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Photo of Sir Frank Sanderson Sir Frank Sanderson , Ealing

asked the Chancellor of the Exchequer whether, in the case of those married women whose entry into industry has so steeply raised the assessment on the husband's income, and, in view of the fact that the joint assessment to taxation for married women is based previous to the Married Women's Property Act, he will provide that married women shall be taxed as individuals?

Photo of Mr Morgan Price Mr Morgan Price , Forest of Dean

asked the Chancellor of the Exchequer whether he is now in a position to say what steps he proposes to take to even out the Income Tax on workmen's wages where present tax is assessed on higher wages than they are now earning?

Photo of Mr Ness Edwards Mr Ness Edwards , Caerphilly

asked the Chancellor of the Exchequer whether he is aware of the hardships imposed upon industrial workers by the present method of deducting Income Tax from wages; and whether he is prepared to consider any amendment of the present scheme?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I have had these matters under careful review, and hope to deal with them in my Budget statement.

Photo of Sir Frank Sanderson Sir Frank Sanderson , Ealing

In view of the importance of this subject and its possible effects upon our war effort, will the right hon. Gentleman give really serious consideration to it between now and the Budget?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

Yes, Sir, I have just said so, although I cannot accept all that the hon. Gentleman says in his Question.

Photo of Mr Morgan Price Mr Morgan Price , Forest of Dean

Will the right hon. Gentleman bear in mind that a great deal of hardship arises from taxing workmen's incomes upon assessments made when their incomes were very much higher?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

That is one side of the shatter. The other side of the position is that unless we adopt some method of that kind, they will not get full advantage of all the allowances to which they are entitled under Income Tax legislation.

Photo of Mr Ness Edwards Mr Ness Edwards , Caerphilly

Will the right hon. Gentleman also consider the time-lag in the notification of amended assessments to employers?

Photo of Mr Daniel Lipson Mr Daniel Lipson , Cheltenham

asked the Chancellor of the Exchequer whether workers who live at some distance from their place of employment, may claim an allowance against their Income Tax liability equal to the amount of their travelling expenses?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

I would invite my hon. Friend's attention to Section 23 of the Finance Act, 1941, which made special provision for an allowance to manual wage-earners in respect of additional travelling expenses, incurred by reason of a change, through war circumstances, in the wage-earner's place of work or residence. The allowance falls To be made only where an increase in the travelling expenses is incurred.

Photo of Mr Daniel Lipson Mr Daniel Lipson , Cheltenham

Does this allowance cover the whole of the increase?

Photo of Mr John Leslie Mr John Leslie , Sedgefield

When the Minister is revising the matter will he take into consideration the non-manual workers?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

Yes, Sir, within the Section I have referred to.